Hey I used to be a loan officer for several years. This is a generic answer and may not fit your needs, however here goes. Loan is a fixed rate product that borrows against the difference in the mortgage current and the appraisal on the property thus equalling equity. If is at or around 5 percent. You wont see a rate like that again for quite some time. Meaning how much of your equity is left if you refinance. The less equity in your home means the higher of an interest rate you will receive. Lenders are tricky and will take you for a loop if you let them. If you need additional money for whatever you are trying to achieve and cannot come up with the cash. Listen the best way to go is a home equity Loan with a fixed rate and the minimal amount needed not a penny more. Most draws are grouped into the thousand dollar category. 00 or that is what they tell you. If you complain enough you can get the loan for the amount you need only. Bankers will try to get you up to up your original draw from say 10k to 25k to get a discounted rate on interest. There benefit they offer is that if will waive the annual maintanince fee if you get both. People often get themselves in bad financial situation they dont need to get into because of it. Remember that all three of those products are tax dedicutable ,the mortgage interest. The rate may be cheaper on a refinance than home equity but a true mortgage loan officer can recommend the correct solution if they are honest. When someone gets a mortgage or refinances their home this is a loan with a specific number of payments. For example, there are 15 and 30 year loans that will need to be paid back over 180 or 360 months, respectively. Once you use this credit it you continue to have payments for the term of the loan. So your mom might use this credit and pay it back. Or she might not use it at all and therefore not have any payments until she uses it again. Home equity lines of credit are usually adjustable rates.

250,000, depending on your FICO score and the equity in your house. 10 year term but they arent required to roll it over. If they dont, banks typiclly simply convert the principal owing into a 20 year home equity loan. 1st mortgages for a similar term.